Investors today are faced with mixed signals. November’s impressive labor report of 266,000 job gains went a long way to easing fears of an imminent recession.
But with buoyant markets brought fresh bubble fears: Are prices overinflating? Are valuations headed for a bigger fall down the road? And won’t terms and structures continue to weaken as direct lenders compete to put money to work? Ad infinitum.
CLO managers, in a flight-to-quality strategy, have focused on strong single-B and double-B names. That left vehicles with unused cash….
▶︎ Read Dec 9 2019 newsletter: here